contents - British Soft Drinks Association€¦ · bottled water bottled water consumption -...

04 Overall soft drinks consumption

06 Bottled water

08 Carbonates

10 Dilutables

12 Fruit juice

14 Still & juice drinks

16 Sports & energy drinks

18 About the soft drinks industry

19 About BSDA

contents

Last year’s sales increase, buoyed by some much-

needed warm, sunny weather should serve as

a reminder that this sector continues to provide

opportunities for growth.

Water and energy

drinks stand out as

the winners from

2013 and despite

some of the claims

by campaigners, the

soft drinks industry

continues to lead

the way in providing

choices for health-

conscious consumers.

Specialist food and drink consultancy, Zenith

International, has been commissioned to produce

the 2014 BSDA UK Soft Drinks Report. All data

and insights contained in this report were produced

using Zenith’s internal market databases and primary

research.

In compiling its research, Zenith relies on the

goodwill and co-operation of companies active in the

marketplace. During Zenith’s annual research into the

UK soft drinks industry, over 100 soft drinks producers

are contacted. This includes larger branded operators,

retailer own label specialists, contract packers and a

significant number of smaller independent companies.

Based on individual producer volumes for the year,

market sector and segment totals are calculated

report methodology and background

introduction

from the ‘bottom up’. At a sector and segment level,

adjustments are then made for any double counting

of contract and licensed bottling. Estimates for

unauthorised soft drink imports sold through the ‘grey

market’ are also included. This is more pronounced in

categories such as carbonates rather than dilute-to-

taste drinks, for example.

The market figures presented therefore encompass all

aspects of the market including: take home, impulse

and on premise; water cooler volumes for the office;

home dispensed carbonated soft drinks; and draught

dispensed carbonates.

Following a detailed review of all data files received,

certain adjustments have been made to historic

volumes.

There is a soft drink for every occasion and consumers

are entitled to choose from an ever increasing wide

range of drinks. However, the industry recognises the

role it can play in encouraging consumers to make

healthier choices.

Companies are investing heavily in sugar-free

alternatives and the evidence from the first few months

of 2014 suggests this is the direction consumers

continue to head in.

Investment in innovation and skills underpins the

contribution the soft drinks industry makes to Britain’s

economy. Analysis shows the wider supply chain has a

value added impact of £7.7 billion and supports a total

of 135,000 jobs.BSDA Director GeneralGavin Partington

2 3

Definition

Carbonated drinks, still and juice drinks, dilutables, fruit

juices and bottled waters. Sports and energy drinks are

included within their relevant categories, namely still and

carbonated drinks respectively.

The rise in temperature in the summer of 2013

confirmed that warm, sunny weather remains the single

most effective driver of soft drinks consumption. Overall

volumes were up 2% to more than 14.5 billion litres

after a 2.5% drop in 2012.

Market value rose by over 3%, to £15.5 billion, proving

that the soft drinks industry can add value even in a

recession, with prices under pressure, promotional

activity constant and consumers on tight budgets

All market figures have again been fully reviewed and

revised historically, where appropriate.

overall soft drinks consumption

UK soft drinks consumption, 2007-13

demanding better value for their money.

Diet and health remained high on the consumer agenda

in 2013. Bottled water was the fastest-growing soft drinks

category, as consumers looked for hydration without

calories.

Carbonates remain the largest sector, followed by

dilutables, bottled water and fruit juice. Still and juice

drinks now account for 10% of the market.

Whilst savvy consumers remained highly value-

conscious, premium drinks proved irresistible as

occasional ‘treats’. New product development continued

apace, in both new formats and new flavours.

2007 2008 2009 2010 2011 2012 2013

Million litres 13770 13630 13915 14485 14595 14235 14520

% change -0.9 -1.0 +2.1 +4.1 +0.8 -2.5 +2.0

Litres per person 226.1 222.4 225.7 233.5 233.8 226.8 230.0

Value, £ million 12500 12605 13010 13770 14475 14955 15460

% change +0.5 +0.8 +3.2 +5.8 +5.1 +3.3 +3.3

Value per litre, £ 0.91 0.92 0.94 0.95 0.99 1.05 1.07

Source: Zenith International

UK soft drinks sectors, 2013

Carbonates [45%]

Dilutables [22%]

Bottled water [16%]

Fruit Juice [7%]

Still and juice drinks [10%]

UK soft drinks, low calorie & no added sugar vs. regular, 2013

Low calorie and no added sugar [61%]

Regular [39%]

4 5Source: Zenith International

Definition

Still, sparkling and lightly carbonated; natural mineral

waters, spring waters and bottled drinking waters

packaged in sizes of 10 litres or below; water for

coolers in sizes of 10.1 and above.

The bottled water market had a phenomenal year in

2013 with volumes across all sectors enjoying robust

growth. Overall consumption increased by 10.4%

from 2012. Consumption of bottled water surpassed

the 2,300 million litre mark. Good summer weather

resulted in a surge in demand.

Consumption of bottled water (excluding water

coolers) increased by 11.6% to just over 2,090 million

litres. More surprisingly, water coolers experienced

growth for the first time, seeing sales rise 1.9% to 269

million litres after 6 years of consecutive decline.

bottled water

UK bottled water consumption, 2007-13

Promotional activity and wider choice in terms of

formats have been key in driving sales across the

take-home and on-the-go retail channels. While sales

through the on premise channel have seen recovery,

the bottled water category still has a way to go to

reach historic levels. In addition, increased demand for

tap water in restaurants poses a threat to sales.

Despite ongoing challenges, the UK bottled water

market has ample opportunities to see an increase in

per person consumption, currently standing at 37.4

litres per person versus the European average of

115.1 litres per person.

2007 2008 2009 2010 2011 2012 2013

Million litres 2090 1970 2010 2025 2070 2135 2360

% change -5.4 -5.6 +1.9 +0.7 +2.2 +3.3 +10.4


% of all soft drinks 15.2 14.5 14.4 13.9 14.2 15.0 16.2

Value, £ million 1430 1360 1400 1420 1490 1610 1820

% change -6.4 -5.0 +3.1 +1.1 +5.0 +8.0 +13.4

Value per litre, £ 0.69 0.69 0.70 0.70 0.72 0.75 0.77


UK bottled water types, 2013

Natural mineral water [60%]

Spring water [32%]

Bottled drinking water [8%]

UK bottled water packaging, 2013

Plastic [96%]

Glass/other [4%]

UK bottled water categories, 2013

Still bottled [74%]

Sparkling bottled [15%]

Still water cooler [11%]

6 7


2007 2008 2009 2010 2011 2012 2013

Million litres 5750 5855 6040 6330 6600 6440 6500

% change -1.1 +1.9 +3.1 +4.8 +4.2 -2.4 +0.9



Value, £ million 6785 7030 7430 7915 8410 8710 8925

% change +1.5 +3.6 +5.7 +6.5 +6.3 +3.5 +2.5

Value per litre, £ 1.18 1.20 1.23 1.25 1.28 1.35 1.37


Definition

Ready to drink carbonates, including draught and

home dispense; regular, low calorie and zero calorie;

sparkling juices; cola; lemon including lemonade;

lemon-lime; energy drinks; mixers including tonic and

bitter drinks; orange; shandy; others including other

carbonated fruit flavours, sparkling flavoured water,

health drinks and herbal drinks.

Carbonates were the largest single category of the

soft drinks market in 2013 with a 44.8% market share

of volume. They saw a modest increase of 0.9% from

6,440 million litres in 2012 to 6,500 million litres in

2013. This meant that per capita consumption also

rose slightly to 103 litres per person.

carbonatesCarbonates’ value rose at more than twice the rate of

volume growth (2.5%) to £8,925 million in 2013, as

companies passed on the increase in raw material

costs.

Low calorie variants remained stable at 39% of the

total carbonates market in 2013; the same level as

2012. The share of fruit carbonates was also stable

at 17% .

Adult carbonates, mostly classed within fruit

carbonates, saw a decline in volume of 4% in 2013,

however, value grew by 4% in the year as price

increases were passed on to consumers.

UK carbonates consumption, 2007-13

UK carbonates regular vs low calorie & no added sugar, 2013

Regular [61%]

Low calorie & no added sugar [39%]

UK carbonates flavours, 2013

Cola [54%]

Fruit [17%]

Lemonade [12%]

Energy [8%]

Other [9%]

UK carbonates packaging, 2013

PET [58%]

Can [27%]

Dispense [10%]

Glass [5%]

8 9


2007 2008 2009 2010 2011 2012 2013

Million litres 3350 3250 3350 3500 3300 3175 3150

% change - -3.0 +3.1 +4.5 -5.7 -3.7 -0.8



Value, £ million 805 795 850 910 945 965 1005

% change - -1.2 +6.9 +7.1 +3.7 +2.0 +4.4

Value per litre, £ 0.24 0.24 0.25 0.26 0.29 0.30 0.32


Definition

Squashes, cordials, powders and other concentrates

for dilution to taste by consumers, adding 4 parts

water to 1 part product for standard concentrates or 9

parts water to 1 part product for double concentrates;

high juice (minimum 40% fruit content as sold); regular

including squashes and cordials (minimum 25%); low

sugar including no added sugar and sugar free.

N.B. dilutables are expressed as ready to drink

for ease of comparison where measuring overall

soft drinks market figures/shares.

2013 saw dilutables consumption drop less sharply

than in 2012, at 0.8%, to 3,150 million litres at ready-

to-drink (RTD) volumes. Sector value rose by 4.4%,

to just over £1 billion, as average prices per litre

continued to increase.

dilutables

UK dilutables consumption, 2007-13

Despite long-term volume decline, dilutables remain

very much the second-largest soft drinks sector in

terms of litres consumed, popular with children and a

staple of the UK market.

No added sugar dilutables have greatly improved the

sector’s image, as have premium high juice variants,

although rising commodity prices have made these

more expensive.

Newer, premium ‘adult’ dilutables, e.g. raspberry

& lemon cordials have tapped into the growing

consumer taste for quality and for natural, ‘healthy’

ingredients and have helped broaden the sector’s

customer base.

Dilutables offer affordability, which has become ever

more important as household budgets have tightened.

UK dilutables regular vs low calorie & no added sugar, 2013


Regular [24%]

High Juice [3%]

UK dilutables flavours, 2013

Blends [54%]

Orange [29%]

Blackcurrant [7%]

Lemon [5%]

Lime [2%]

Others [3%]

UK dilutables packaging, 2013

Plastic up to 1 litre [59%]

Plastic over 1 litre [38%]

Others [3%]

10 11


Definition

100% fruit content equivalent, sometimes referred to

as pure juice or 100% juice. Chilled juice comprises

four main types: freshly squeezed juice; not from

concentrate juice; chilled from concentrate (may

be from concentrate or part from concentrate);

smoothies. Ambient or long life juices are mainly from

concentrate.

Consumption of fruit juice fell by 5% in 2013, to 1,050

million litres. Sector value also declined by 2.2%, to

£1820 million. The rising cost of raw materials pushed

up prices and impacted on volume growth – the

average price per litre rose 2.9% in 2013.

Fruit juice is not the drink of choice in hot weather

and as such the sector failed to benefit from the

fruit juice

2007 2008 2009 2010 2011 2012 2013

Million litres 1230 1190 1145 1180 1160 1105 1050

% change +1.7 -3.3 -3.8 +3.1 -1.7 -4.9 -5.0



Value, £ million 1830 1760 1670 1760 1835 1860 1820

% change +0.5 -3.8 -5.1 +5.4 +4.2 +1.5 -2.2

Value per litre, £ 1.49 1.48 1.46 1.49 1.58 1.69 1.74


UK fruit juice consumption, 2007-13

good summer. Rising prices and tighter budgets

meant consumers bought less often and less per trip.

However, they were more likely to buy better – chilled

fruit juice continued to take a share from ambient.

The chilled not from concentrates (NFC) sector is now

very nearly as large as ambient juice, driven on by big

brands and big marketing budgets. The high sugar

content of pure fruit juices worked against the sector

as a whole in 2013.

Smoothies continued to struggle, with volumes down

4.6%, to 50 million litres, as high unit prices continued

to prompt consumers to migrate to other soft drinks

options.

UK ambient vs chilled fruit juice, 2013

Ambient [40%]

Chilled not from concentrate [38%]

Chilled from concentrate [16%]

Chilled smoothies [5%]

Chilled freshly squeezed [1%]

UK fruit juice flavours, 2013

Orange [54%]

Apple [13%]

Blends [21%]

Pineapple [4%]

Grapefruit [2%]

Others [6%]

UK fruit juice packaging, 2013

Carton [74%]

Plastic [19%]

Glass/other [7%]

12 13


2007 2008 2009 2010 2011 2012 2013

Million litres 1350 1360 1370 1450 1470 1380 1465

% change +3.1 +0.7 +0.7 +5.8 +1.2 -6.0 +6.2



Value, £ million 1650 1660 1660 1770 1795 1820 1890

% change +3.4 +0.6 - +6.6 +1.5 +1.2 +4.0

Value per litre, £ 1.22 1.22 1.21 1.22 1.22 1.32 1.29


Definition

High fruit juice (25-99% fruit content); juice drinks

(5-25% fruit content); other still drinks (0-5%) including

iced tea, sports drinks, still flavoured water and non-

fruit drinks.

Still and juice drinks saw a rise in volumes of 6.2%

from 1,380 million litres in 2012 to 1,465 million litres

in 2013; this meant a per capita consumption of 23.2

litres. Hot summer weather in 2013 helped to increase

consumption.

still and juice drinks

UK still and juice drinks consumption, 2007-13

The value of the category rose by 4% to £1,890 million

in 2013. No added sugar drinks accounted for a 43%

share in 2013, up from 42% in 2012.

The category covers many different products including

high juice drinks, which showed a 9.1 % fall in volume

from 165 million litres in 2012 to 150 million litres in

2013. Still flavoured water grew 9.9% from 196 million

litres in 2012 to 215 million in 2013.

UK still & juice drinks regular vs low calorie & no added sugar, 2013

Regular [57%]


UK still & juice drinks categories, 2013

Juice drinks [59%]

Still flavoured water [15%]

Nectars [10%]

Sports [10%]

Juicy water [3%]

Others [3%]

UK still & juice drinks packaging, 2013 Carton [45%]

Plastic [39%]

Glass/other [16%]

14 15


2007 2008 2009 2010 2011 2012 2013

Sports Drinks, Million litres 125 135 140 160 165 155 150

% change +13.6 +8.0 +5.3 +12.5 +4.6 -6.4 -3.9



Energy Drinks, Million litres 270 305 330 370 435 475 500

% change +14.9 +13.7 +7.2 +12.5 +17.0 +9.7 +5.1




Definition - Sports drinks

Drinks that enhance physical performance before,

during or after physical/sporting activity. Sports drinks

replace fluids and electrolytes/minerals lost by sweating

and supply a boost of carbohydrate: isotonic (fluid,

electrolytes and 6 to 8% carbohydrate), hypotonic

(fluids, electrolytes and a low level of carbohydrate) and

hypertonic (high level of carbohydrate).

Definition - Energy drinks

Traditional glucose based energy drinks; functional or

stimulation energy drinks which claim a particular energy

boost from caffeine, guarana, taurine, ginseng or other

herbs or some combination of these ingredients.

Sports and energy drinks saw modest growth in 2013

rising from 630 million litres in 2012 to 650 million litres

in 2013; a rise of 2.9%.

sports and energy drinks

UK sports and energy drinks consumption, 2007-13

In fact, sports and energy drinks had very contrasting

fortunes in 2013. Sports drinks saw a decline in volume

from 155 million litres to 150 million litres; a fall of 3.9%.

This equated to consumption of 2.4 litres per person.

The total value of sports drinks declined by 4.9% in

2013 to £255 million.

Meanwhile energy drinks grew from 475 million litres in

2012 to 500 million litres in 2013; an increase of 5.1%.

This represented per capita consumption of 7.9 litres.

However, value only grew by 2% to £1,430 million.

This suggests that price competition continues to be

fierce for energy drinks in 2013. Premium brands had to

respond with promotions or price cuts to fast growing

budget brands.

New product development with a wider range of

flavours helped to diversify the offering of some of the

market leaders in 2013.

UK energy drink types, 2013

Glucose [39%]

Stimulant [61%]

UK sports and energy drinks, 2013

Sports [23%]

Energy [77%]

16 17Source: Zenith International

The soft drinks industry is a major contributor to the UK

economy through investment in skills, innovation, jobs

and economic growth.

• Contributes around £7.7 billion to the UK economy -

£1.4 billion directly from investment and spending.

• Supports 135,000 jobs in the UK, around 20,000

of these directly within soft drinks companies, and

115,000 through the wider supply chain.

• Exported £233 million in the first half of 2013, a 6.7%

increase compared with the same period in 2012.

The soft drinks industry is committed to reducing its

environmental impact, by changing packaging design,

encouraging recycling and cutting waste. BSDA is

currently working with Defra to develop a Sustainability

Roadmap. The Roadmap will be a means of sharing

best practice in sustainability throughout the soft drinks

supply chain and helping companies to become more

resource-efficient whilst maintaining the flexibility to meet

their business goals in the most cost-effective way.

The soft drinks industry is committed to helping

consumers make good choices and live healthier

lives. Our members have already made substantial

changes to their product ranges, through reformulation,

introducing low and no sugar options, offering a wider

range of portion sizes and through innovative marketing

campaigns.

about the soft drinks industry

about BSDA

Soft drinks and UK manufacturing

Soft drinks and sustainability

Soft drinks and health

The British Soft Drinks Association is the national trade

association representing the collective interests of

producers and manufacturers of soft drinks including

carbonated drinks, still and dilutable drinks, fruit juices

and bottled waters.

Main membership benefits include:

• Information, advice and advance warning on

all aspects of the industry, including technical

standards, best practice and legislation to ensure

good planning.

• Participation in the development of Codes of Practice

and initiatives to promote the industry’s reputation

and demonstrate social responsibility.

• Assistance and advice on incident management.

18 19

• The opportunity to network with industry colleagues

at BSDA meetings and events and influence policy-

making.

• Access to and representation by our European

Associations: UNESDA, AIJN and EFBW.

• Inclusion in BSDA’s online listing of manufacturers

and suppliers and access to Member only website.

• A range of courses tailored to the industry with

substantial discounts for members.

For more information about BSDAand its activities contact

British Soft Drinks Association

20-22 Bedford Row

London

WC1R 4EB

Telephone: +44 (0) 20 7405 0300

Fax: +44 (0) 20 7831 6014

Email: [email protected]

Website: www.britishsoftdrinks.com

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